The Following Table Describes the Reservation Prices and Four Bids

question 9

Multiple Choice

The following table describes the reservation prices and four bids for an auction of three tickets to the recent Madonna concert.
If the marginal cost of providing a seat for one more Madonna fan is $0,the total producer surplus that results from this auction is:

• A) $0.
• B) $297.
• C) $1,803.
• D) $2,100.
• E) none of the above.

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Definitions:

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, resulting in net profit or loss.

Net Operating Income

The total profit a company makes from its operations, excluding taxes and interest.

Fixed Monthly Expenses

Recurring expenses that do not vary in amount each month, such as rent or mortgage payments.

Net Operating Income

Earnings from a company's everyday business operations, excluding extraordinary items and other non-operating expenses.